Why can’t countries like Greece or Spain use quantitative easing as a means to stimulate the...

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Why can’t countries like Greece or Spain use quantitative easing as a means to stimulate the economies?

Robert · Accepted Answer

Why can’t countries like Greece or Spain use quantitative easing as a means to stimulate the economies?
Quantitative easing is an expansionary monetary policy wherein central bank prints more money and uses it to buy government security (or treasury securities) from the market. this has two effects:
· This causes a rise in demand for these securities, reducing the rates of return on them as well increasing the liquidity in the system. Lower rates are good for investments and are expected to boost investment demand, and therefore aggregate demand. 
· As money is printed the money supply rises. This has caused inflation to rise in the US experience.

Why can’t countries like Greece or Spain use quantitative easing as a means to stimulate the economies?

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